Windstream's $38M Fla. broadband stimulus project gets underway

Windstream (Nasdaq: WIN) has broken ground on its first broadband stimulus project in Mayo, Fla. thanks to a broadband stimulus grant it won in the state under the American Recovery and Reinvestment Act (ARRA).

While the service provider did not specify how much the Mayo project will cost, in Florida, Windstream won a total of $38.3 million in grants to fund various broadband service projects throughout the state. The service provider will also contribute its own $12.7 million to the total figure in the state.

Similar to other broadband stimulus projects it recently launched in its Iowa, Kentucky and Mississippi territories, the Mayo buildout is also small, serving only about 60 customers.

To extend up to 6 Mbps broadband speed services to these customers, Windstream will upgrade its existing last mile network with over two miles of fiber in addition to necessary electronic equipment (DSLAMs and broadband loop carrier systems).

Windstream expects a quick turnaround, with construction on the project set to begin later this month and service available to customers in mid-December.

Although Windstream is one of the largest recipients of broadband stimulus grants, winning $181.3 million for projects in 13 states, including Florida, the service provider's approach with smaller projects is likely being done as a way to establish best practices to drive broadband in harder to reach areas.